To: BSA Board of Directors From: Tim Love AIA, President Re: … · 2019-06-06 · • Site 1...

To: BSA Board of Directors From: Tim Love AIA, President Re: Agenda & materials Date: Thursday, June 25, 2015

The next meeting of the board convenes on Thursday, June 25 at 8:00am, at BSA Space. AGENDA 7:45am Breakfast is served 8:00am Call to order Approve May 7, 2015 meeting minutes [VOTE] 8:05am AIA National Convention update 8:10am 2014 Audit results 8:25am Strategic Focus: Knowledge/Practice 9:25am Joint Strategic Collaboration Committee update 9:30am Nominating Committee recommendations [VOTE] 9:45am Other business ABX update CAS report 10:00am Adjourn ENCLOSURES 2015 BSA board list p. 2 Knowledge/Practice report p. 38 2015 BSA board meeting schedule p. 3 Joint Strategic Collaboration update p. 40 2015 BSA board agenda schedule p. 4 ABX Analysis p. 42 President’s report p. 5 CAS report p. 56 Executive Director’s report p. 8 Minutes of 5/7/2015 meeting p. 12 Available at meeting: Q2 Membership reports (preliminary) p. 14 Nominating Cte report 2014 Audit results p.16

2015 BSA Board of Directors Greg Bialecki (’17) (617) 406-6019 [email protected]

Joseph Geller (’16) Stantec 141 Portland Street Boston, MA 02114 617-523-8103 [email protected]

Mark Pasnik AIA (’16) over,under 46 Waltham St. Courtyard 1 Boston, MA 02118 617-426-4466 [email protected]

Jean Carroon FAIA (’17) Goody Clancy 420 Boylston St Boston, MA 02116 (617) 850-6651 [email protected]

Emily Grandstaff-Rice AIA (’15) Cambridge Seven Associates 1050 Massachusetts Avenue Cambridge, MA 02138 617-492-7000 [email protected]

Lee Peters AIA Boston Architectural College 320 Newbury St Boston, MA 02115 (617) 262-5000 [email protected]

Brandon Clifford MIT 77 Massachusetts Avenue, Rm 5-421 Cambridge, MA 02141 617-852-3527 [email protected]

Stephen Gray Assoc. AIA (’16) Sasaki Associates, Inc. 64 Pleasant Street Watertown, MA 02472 617-926-3300 [email protected]

Tamara Roy AIA (’17) ADD Inc./Stantec 311 Summer Street Boston, MA 02210 617-234-3196 [email protected]

James H. Collins, Jr. FAIA (’17) Payette 290 Congress Street, 5th Floor Boston, MA 02210 617-895-1022 [email protected]

Eric Höweler AIA Harvard Graduate School of Design 48 Quincy Street Cambridge, MA 02138 617-496-3995 [email protected]

Patricia Seitz AIA Mass College of Art & Design 621 Huntington Ave Boston, MA 02115 (617) 879-7677 [email protected]

Mike Davis FAIA Bergmeyer Associates 51 Sleeper Street Boston, MA 02210 617-542-1025 [email protected]

Peter Kuttner FAIA (’15) Cambridge Seven Associates 1050 Massachusetts Avenue Cambridge, MA 02138 617-492-7000 [email protected]

Bradford Walker AIA (’16) Ruhl Walker Architects, Inc. 60 K Street, Ste 3 South Boston, MA 02127 617-268-5479 [email protected]

Rick Dimino (’16) A Better City 33 Broad Street, Ste 300 Boston, MA 02109 617-502-6240 [email protected]

Tim Love AIA (’16) Utile, Inc. 115 Kingston Street Boston, MA 02111 617-423-7200 [email protected]

Elise Woodward AIA (’16) PO Box 587 Concord, MA 01742 (617) 794-1186 [email protected]

David Eisen AIA (’16) Abacus Architects + Planners 119 Braintree Street, Ste 318 Allston, MA 02134 617-562-4446 [email protected]

Michael MacPhail AIA Wentworth Institute of Technology 550 Huntington Avenue Boston, MA 02115 617-989-4455 [email protected]

David Fannon AIA Northeastern University 360 Huntington Ave. Boston, MA 02115 617-373-2641 [email protected]

Elizabeth Minnis AIA (’17) Commonwealth of MA/DCAM 1 Ashburton Pl Rm 1500 Boston, MA 02108 (857) 204-1566 [email protected]

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mailto:gregorybialecki@

mailto:[email protected]

https://online.architects.org/bsa/ecmmsgqueue.entermessage?p_email_vars=6602:[email protected]:



















2015 BSA Board Meeting Dates

January 15 6-8p Joint board reception at BSA Space

January 16 9a-3p Orientation workshop (Location TBD)

March 19 8-10a

May 7 8-10a

June 25 8-10a

September 10 8-10a Joint board meeting w/ BSA Foundation

November 12 8-10a

December 10 6-8p Annual meeting

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2015 BSA Board Meeting Agenda Schedule (as of 04/01/2015)

This is subject to change at anytime

2015 Agenda Items Reports

January 15 – Joint board reception

A social event for the Society and Foundation boards

January 16 – Orientation Workshop (Location TBD) ExComm: 1/15 4:30-5:30p

Review goals for year Prez agenda Joint Strategic Collaboration recap BSA board 101 Committee appointments

March 19 ExComm: 3/12 9-10a

Strategic Focus: Advocacy Strategic focus: Communication New Fellows & AIA National winners Ethics or Investment cte recommendations

2014 Final reports -Budget & Investment -ED and Prez -Membership -Press/letters

May 7 ExComm: 4/30 9-10a

Strategic focus: Collaboration/Membership Approve H&A recommendations Candidate issues for convention Joint Strategic Collaboration update

Q1 reports -Budget & Investment -ED and Prez -Membership -Press/letters

June 25 ExComm: 6/18 9-10a

Strategic focus: Knowledge/Practice Approve Nom Com 2016 slate 2014 Audit results AIA Convention update Board seats Committee reforms

Q2 reports (Preliminary) -Budget & Investment -ED and Prez -Membership -Press/letters

September 10 – Joint board meeting ExComm: 9/3 9-10a

BSA ExComm to review draft budget BSA Foundation board invited to attend Exhibitions/programs update Relationship between Foundation and Society

November 12 ExComm: 11/5 9-10a

BSA bylaws changes for Annual meeting 2016 Budget review and recommend Board evaluations Big Sibs update Joint Strategic Collaboration Assessment

Q3 reports -Budget & Investment -ED and Prez -Membership -Press/letters

December 10 – Annual meeting w/ reception to follow ExComm: 12/10 4:30-5:30p

Vote on 2016 budget Vote on bylaw changes/other business BSA Honors presentation 2015 President’s report Introduce new President and board Appoint Foundation rep

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To: BSA Board of Directors

From: Tim Love AIA, President

Re: President’s report

Date: June 25, 2015

Living with Water Competition The international Boston Living with Water international design competition concluded on June 8 with a standing-room-only event at BSA Space with approximately 250 people in attendance. After Mike Davis welcomed the crowd, Mayor Walsh announced the winners:

• Site 1 (Prince Building/North End) Winner: Prince Building Piers - led by Stephanie Goldberg AIA and Mark Reed AIA

• Site 2 (100 Acres/Fort Point) Winner: "ReDeBOSTON 2100" - led by Architerra, Boston • Site 3 (Morrissey Boulevard) Winner: Total Resilient Approach - led by Thetis S.p.A., Venice • Plus an overall Honorable Mention was given to NBBJ (finalists in the 100 Acres/Fort Point site

with "Resilient Linkages") Winning firms ranged from a husband/wife team to a local mid-size practice to an international office to a big corporate firm with a Boston outpost - reflecting the range of practice today. During the event, Mayor Walsh issued a "directive” to BRA staff to tweak the current development guidelines so that developers don't get penalized for putting non-essential uses on the ground floor. Thank you Kairos Shen! The BSA organized an impromptu farewell for Kairos Shen at the Living with Water event. Shen, who was asked to leave by the Walsh Administration the week prior, played a major role shaping the public realm of Boston during the past twenty years, most recently as the City’s Chief Planner. Trained as an architect and with deep knowledge of the history and practice of urban design, Shen was a collaborator with the many BSA members who helped shape Boston’s skyline and neighborhoods. His zeal for the art and practice of urban design raised awareness of the virtues of Boston’s unique “progressive contextualism” in architecture firms whose first mission was designing highly functional and elegant buildings. Our physical fabric is a much better place because of his principles and influence. The BSA hopes that future BSA leaders and staff bring the same level of knowledge, professionalism, talent, and generosity to the agency. Urban Design Workshop Program Planning has started for the Fall 2015 Urban Design Workshop; Suffolk Downs will be the next focus for the program. BSA President Tim Love and Urban Design Committee Co-chair Meera Deean have held organizational meetings with the BSLA and the local chapters of ULI and APA in order to coordinate a more truly interdisciplinary charrette. A meeting is also scheduled with Tad Read, Acting Chief Planner at the BRA, and other key staff to discuss the opportunities and challenges of the site. The three day event is tentatively scheduled for early October.

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BSA Media Impact The BSA continues to impact the larger debate about the design of the built environment and the potential reform of polices that shape it. Strong, well-focused op-ed pieces were recently published in the Globe by David Eisen AIA and in bostonmagazine.com by Mark Pasnik AIA, both powerful platforms with wide reach among diverse and influential readers. Persistent elevation of the voice of BSA leadership in the mainstream media underscores the organization’s growing reputation for bringing principled, disciplined, highly creative, and credible positions into the discussion about Boston’s evolving public realm. Exhibitions Bigger than a Breadbox, Smaller than a Building On June 17th, Bigger than a Breadbox, Smaller than a Building opened at the BSA Space. The exhibition explores the medium of installation as a way for architects to explore and prototype exciting new technologies and building techniques. Curated by design team Khora, Inc., the exhibition includes a historical analysis of art installation and features experimental and visually arresting works by local and national architects and designers. The installations in the show are the result of a design competition. Density Atlas: Measuring Urban Density Density Atlas: Measuring Urban Density opened at the BSA Space on May 28th. This mini-exhibition illustrates the context of the density debate, the implications for planning and design, the different measurements for urban density, and presents case studies from Boston and abroad. The exhibition is an offshoot of the research and work of Tunney Lee AIA—a professor in the department of Urban Studies and Planning at the Massachusetts Institute of Technology School of Architecture + Planning – and students and alumni. Tunney’s team has created Density Atlas, an online resource scheduled to be released in the fall of 2015. 2015 Design Biennial Boston On July 16th, the winners of the 2015 Design Biennial Boston will be featured in an exhibition at the BSA Space and with site-specific installations on the Rose F. Kennedy Greenway. The program is sponsored by the Mayor’s Office of New Urban Mechanics and the Boston Art Commission in collaboration with pinkcomma gallery, BSA Space, and the Rose Fitzgerald Kennedy Greenway Conservancy. The winners, whose work provides ample evidence of Boston’s rich design talent, were selected following an open call for entries by a distinguished jury. The winners include Cristina Parreño Alonso of Cristina Parreño Architecture, Cynthia Gunadi and Joel Lamere of GLD, Dan Adams and Marie Law Adams of Landing Studio, and Michael Murphy and Alan Ricks of MASS Design Group. Mariana Ibañez and Simon Kim of IK Studio and Daniel Ibañez and Rodrigo Rubio of Margen-Lab received honorable mention awards this year for their contributions. Storefront Gallery: Coastal Flooding: Reality, Risk + Opportunity In addition to the excellent programming in the main exhibition space, Coastal Flooding: Reality, Risk + Opportunity, which opened on April 1, continues in the storefront gallery. The show focuses on Boston’s on-going relationship to its harbor and water. Scientists predict that by the end of this century, Boston will experience three to 6 feet of sea-level rise. This change will alter the city’s streets and buildings, the landscapes and neighborhoods in ways that we can only begin to imagine.

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Storefront Gallery: Building Boston The storefront gallery includes the BRA’s second comprehensive model of central Boston (the other model resides in the BRA office on the 9th floor of City Hall). In the 1970s, BRA created a model of the City of Boston—called Building Boston—to show off the city’s growing skyline, but by the early 1980s, it was put it into deep storage. Then, to assist with security planning for the 2004 Democratic National Convention, the model was cleaned and updated, only to be returned to the vaults when the conventioneers left town. Recognizing its value as a way to understand and enjoy Boston’s evolving cityscape, the Boston Society of Architects/AIA, the BSA Foundation, and the BRA decided in 2013 to make the model available once again for public viewing. After careful restoration and updating by CBT Architects, this historic model has found a new home in the storefront gallery of BSA Space. AIA Convention Many BSA members joined colleagues from around the US at the AIA National Convention in Atlanta on May 14-16. Highlights included a presentation and conversation with President Clinton and the awarding of the 2015 Gold Medal winner to BSA member Moshe Safdie FAIA. Several other BSA members were also at the convention including seven new Fellows, two new Young Architects and two new Associate AIA and the Cambridge Public Library by William Rawn Associates and Ann Beha Architects, and the Government Center Garage Redevelopment by CBT. Thank you to Emily Grandstaff-Rice AIA and Peter Kuttner FAIA for representing the BSA at the convention business meeting where Thomas Vonier FAIA was elected 1st Vice President/ 2017 President-elect, Stuart Coppedge AIA elected Treasurer, and Jennifer Workman AIA, Jane Frederick FAIA, and Anthony Schirripa FAIA the At-large Directors. The Bylaws Amendment “Core Member Services and Formation of Sections by State Organizations” passed as did two resolutions “Equity in Architecture,” and the two graduated dues resolutions: a5-2a “Graduated Member Dues for Newly Licensed Architect Members” passed with an amendment clarifying the graduated structure only applies to National dues for Associates advancing to Architect membership; and 15-2b “Graduated Member Dues – Pilot Programs.” Next year’s convention will be May 19-21 in Philadelphia.

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From: Eric White, Executive Director

Re: Executive Director’s Report

Date: June 25, 2015

Financials The BSA Audit Committee convened on June 18 to review the 2014 financial results, which will be discussed at the June 25 board meeting. We are beginning work on the 2016 budget. Business Development The 27th Annual BSA Foundation Golf Tournament will be hosted on July 21st at Pinehills Golf Course. There are currently 30 teams signed up including two premium sponsorships (National Grid and Stretchwall) All proceeds will benefit the BSA Foundation. We plan to shift from Boston Globe media to Boston Magazine Media (BMM) as the exclusive print sponsor of the 2015 BSA Design Awards (held January 2016). BMM will design, develop, print and distribute a booklet post-gala promoting the winners to the public, manage the People’s Choice award, and online advertorial articles. ABX Exhibit sales for ABX 2015 continue to be ahead of last year. We are following up on new contacts made at the Atlanta AIA convention, and developing new interactive demos for the exhibit floor. The conference program is finalized and notifications have been sent to all who submitted. This year's program went through an extensive review by staff, industry professionals (from other BSLA, CDRC, LBD, TBHA, IES Boston, DLF New England), and an ad-hoc ABX Conference Review Committee of BSA members. This year's expanded program features 200+ workshops and tours and include new tracks on City Planning, Healthcare, Education, and Technology. Membership and Committees The Membership Committee is in the process of reviewing dues restructuring, per board recommendation, with the board taskforce. The Committee has reached out to all area schools and anticipates diverse representation for the re-launched Student Design Showcase. Membership staff has launched new efforts to assist firms in updating employee rosters and to extend formal individual memberships to corporate affiliate firm representatives. We also welcomed Michael Riscica AIA, from Portland, author of youngarchitect.com, to a meet-and-greet lunch for ARE candidates on Friday, June 19. BSA Foundation The BSA/Foundation Joint Strategic Collaboration Committee convened to discuss a communications implementation strategy (see agenda).

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http://youngarchitect.com/

Communications The summer issue of ArchitectureBoston, Voyage, dropped and is also available at architectureboston.com. It is mailed to all AIA members in New England, policy makers, thought leaders, and other subscribers, and copies are sold at Harvard Books, Brookline Booksmith, Porter Square Books, and the Trident Bookstore and Cafe. Guests of the InterContinental Boston also enjoy ArchitectureBoston in the hotel lounge. We are developing a communications strategy proposed by the BSA/Foundation Joint Strategic Collaboration Committee. We said goodbye to our intern, Kaela Henderson, a high school student who assisted us by organizing physical press clippings. Exhibitions On June 17, opened Bigger than a Breadbox, Smaller than a Building opened to rave reviews from both professional and public audience groups. Curated by the design team Khora LLC, the exhibition explores art installation as a means for architects to experiment with new and innovative techniques. Content in the Storefront Gallery continues to expand, with updated interpretive signage around the model, attention-grabbing window graphics, Living With Water exploratory panels, and plans for a streetfront design competition this fall. The opening of Density Atlas, a professionally-oriented exhibition by Tunny Li FAIA examines the impact of density on housing and urban life globally (see Harbor and Congress rooms). Civic Initiatives Boston Futures: 2024 and Beyond is a series of conversations launched last month that focus on the legacy of the Olympic Games, starting with the question of what do we want the city to be? Panel discussions will be held at various venues, including BSA Space, Northeastern, MIT and Harvard. The upcoming discussion, held at BSA Space and moderated by Chris Reed of Stoss, will focus on parks and open space and Olmsted's legacy. Other topics include resiliency/climate change, transportation and mobility; and innovation and entrepreneurship. Staff is working City Hall leadership with both RFI responses to City Hall Plaza as well as the citywide planning efforts. Programs This spring we offered a wide variety of programs (both BSA and BSA Foundation), including discussions around Boston 2024, building tours, youth programming, and a small exhibition around global density in urban areas. In addition we are focused on preparing for summer and fall programming. With an eye on the approaching continuing education requirement deadline in August, we increased our professional workshop series from 8 to over 20 options being offered in July and August. Our fall 2015 programming is also underway, with programs and tours focused around ethics, universal design and accessibility, and the ever popular Designing Boston series that will be back in September.

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Professional Programs: April – June 2015 4/1—Build Yourself+ Workshop 4/2—Dorchester Avenue Housing Workshop Closing Presentations 4/6—Designing Boston: Ted Landsmark 4/8—Build Yourself+ Workshop 4/9—Rotch Scholarship Reception 4/9—EPNET: Leadership Lunch Sign ups 4/14—ARE Study Group Kick-off event 4/15—Build Yourself+ Workshop 4/21—EPNet: Finding your path in Architecture: Business Development, marketing 4/22—LWW: Finalist pinup/roundtable 4/29—AB Mag: Public/Private – Yours, Mine, Ours: A Community Conversation 4/30—Fellows Dinner 5/1—EPNet: Leadership Lunch Program (Through September) 5/4—What is the Legacy of the 2024 Olympics? 5/6-5/7—IDeAS: Innovative Design Alternatives Summit 5/12—Nancy Seasholes: Frederick Law Olmsted: Making Land for Boston’s Parks 5/20—Client Conversations: Selecting the Architect for a Private Development 5/20—EPNet: Finding your path in Architecture: Graphic Design 5/21—Tour of Spaulding Rehab Building 5/28—Density Atlas: Measuring Urban Density, Opening Reception

6/1—Designing Boston: Boston’s Cultural Plan 6/8—Living with Water Final Awards Reception 6/11—EPNet: Tactical Urbanism + The Lawn on D (Partnering with BSLA) 6/19—The Architect Registration Exam: What am I getting myself into? 6/22—Boston’s Future Event (co-sponsor) 6/25—Boston Design Biennial exhibition opening Upcoming Professional Programs: July – August 2015 7/14—EPNet: Finding your path in Architecture: Photography 7/27-8/19—Summer CEU Workshops (Total of approx. 20 workshops) Fall-- Building Tours Fall—Mayors Series Fall—Ethics Workshop Fall—Designing Boston Fall—Young Architects Civic Event Fall—Client Conversations Developers Series Cont. Fall—College Fair

Foundation Programs April –June 2015 4/2—Housing Urban Design Final Presentations 4/3—Film Series: TINY 4/6—Designing Boston: Ted Landsmark 4/7—Building Blocks: Art Deco 4/11&12—KidsBuild 4/14—Student Design Day at New Academy Estates in Roxbury 4/15—Student Design Day: International School of Boston 4/21—Student Design Day: Pierce School 4/22—Living with Water Pin Up 4/22 & 4/23—Student Design Day: Teen Workshop

4/25—Art Deco Building Tour 4/30—Typecast: Twelve Quick Talks on Type (BSA/AIGA partnership) 5/1—Film Series: Detropia 5/5—Student Design Day: Homeschool 5/5—Living with Water program @ Goulston Storrs 5/6—What the Sketch 5/8—Student Design Day: Homeschool 5/12—Nancy Seasholes: Gaining Ground 5/16—Family Design Day: Living with Water 6/8—Living with Water Final Awards Reception 6/9—Student Design Day: Homeschool

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6/12—Student Design Day: Homeshool 6/17—Breadbox Exhibition Opening Reception 6/19—INTER/SECTIONS: The Work of Janet Echelman 6/20—Family Design Day: Art in Public Places 6/24—City Sketch Walk

Upcoming Foundation Programs July-August 2015 7/8—Dining with Design: TRADE 7/16—Biennale Opening Reception 7/18—Walking Tour: Back Bays Evolving Skyline 7/21—BSA Foundation Golf Tournament 7/22—Eyes on Boston: Urban Photo Walk 8/5—Happy House Design Studio: LEGO Challenge 8/17—Ding with Design: The Sinclair 8/29—Walking Tour: Architectural Darwinism Fall—Bigger than a Breadbox programming Fall—Film Series Fall—Dining with Design (cont.) Fall—Book Talks

Press Since May Artscope: International Artists Explore Font as Art (SteroType exhibition) http://zine.artscopemagazine.com/2015/04/stereotype/ The Boston Globe: Steps to make Boston a model for development (David Eisen's piece) http://www.bostonglobe.com/opinion/2015/05/26/steps-make-boston-model-for-development/kfwZ3cxyWmjXaaCwGFKhSP/story.html The Boston Globe: Think outside the box: Tips for great outdoor spaces (Homeowners Project Handbook mention) https://www.bostonglobe.com/lifestyle/real-estate/2015/05/30/think-outside-box-tips-for-great-outdoor-spaces/W4Urx1xHnpXIluSHJAQY1K/story.html# WGBH: http://wgbhnews.org/post/bostons-living-water-winners-design-solutions-rising-sea-levels Boston City TV: Mayor Walsh speaks at the Boston Living with Water Awards Ceremony BNN News: BNN News looks at "Boston Living with Water" Boston architecture: Center Plaza, symbol of a rejected era, getting new look: http://www.bostonglobe.com/business/2015/06/10/center-plaza-renovations-add-locally-owned-restaurants-high-end-shops-maybe-music-venues/hue5k7ZvFyvWkDLiqLBiZI/story.html http://www.gsd.harvard.edu/#/news/gsd-alumni-professors-students-lead-in-boston-living-with-water.html http://nextcity.org/daily/entry/design-look-boston-living-with-water-winners

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http://zine.artscopemagazine.com/2015/04/stereotype/

http://www.bostonglobe.com/opinion/2015/05/26/steps-make-boston-model-for-development/kfwZ3cxyWmjXaaCwGFKhSP/story.html

http://www.bostonglobe.com/opinion/2015/05/26/steps-make-boston-model-for-development/kfwZ3cxyWmjXaaCwGFKhSP/story.html

https://www.bostonglobe.com/lifestyle/real-estate/2015/05/30/think-outside-box-tips-for-great-outdoor-spaces/W4Urx1xHnpXIluSHJAQY1K/story.html%23

https://www.bostonglobe.com/lifestyle/real-estate/2015/05/30/think-outside-box-tips-for-great-outdoor-spaces/W4Urx1xHnpXIluSHJAQY1K/story.html%23

http://wgbhnews.org/post/bostons-living-water-winners-design-solutions-rising-sea-levels

https://youtu.be/ddeqZbLbWpQ

https://www.youtube.com/watch?v=xKlEQCf7T7Q&feature=youtu.be

http://www.bostonglobe.com/business/2015/06/10/center-plaza-renovations-add-locally-owned-restaurants-high-end-shops-maybe-music-venues/hue5k7ZvFyvWkDLiqLBiZI/story.html

http://www.bostonglobe.com/business/2015/06/10/center-plaza-renovations-add-locally-owned-restaurants-high-end-shops-maybe-music-venues/hue5k7ZvFyvWkDLiqLBiZI/story.html

http://www.gsd.harvard.edu/#/news/gsd-alumni-professors-students-lead-in-boston-living-with-water.html

http://www.gsd.harvard.edu/#/news/gsd-alumni-professors-students-lead-in-boston-living-with-water.html

http://nextcity.org/daily/entry/design-look-boston-living-with-water-winners

May 7, 2015 Minutes of the board

Present: Jean Carroon FAIA, Jim Collins FAIA, David Eisen AIA, David Fannon AIA, Emily Grandstaff-Rice AIA, Stephen Gray Assoc. AIA, Peter Kuttner FAIA, Tim Love AIA, Michael MacPhail AIA, Mark Pasnik AIA, Lee Peters AIA, Tamara Roy AIA, Patricia Seitz AIA, Brad Walker AIA, Elise Woodward AIA Guests: Naz Cooper Assoc. AIA, Elizabeth Cox AIA, Sarah Lindenfeld AI, Rachel Zsembery AIA Staff: Ben Cohen, Tyler Huntington, Conor MacDonald

Absent: Greg Bialecki, Brandon Clifford, Mike Davis FAIA, Joseph Geller, Eric Howeler AIA, Liz Minnis AIA, Eric White

Welcome: Noting the presence of a quorum, President Love called the meeting to order at 8am and welcomed the board.

Minutes of Prior Meeting:

Upon a motion by Pasnik, seconded by Grandstaff-Rice, it was VOTED to accept the minutes of the March 19, 2015 board meeting as submitted; Unanimous.

Update on Retreat Themes:

Love provided a brief update on a few initiatives created from the January retreat themes. A meeting with the board design school reps convened to discuss a plan for the proposed adjunct job fair and ways to better integrate the area design schools with the BSA.

2014 Q1 Financial Reports:

Controller Cohen and Treasurer Collins discussed the Q1 financial reports, including P&L and investment. Cohen noted that we finished the quarter as expected and are on budget according to last year, also noting that the Design Awards Gala had a small surplus of $4K. Cohen also reported that the audit was completed by Nardella & Taylor, revealing a small operating surplus, which will be detailed at the June 25 meeting.

AIA National Convention Issues:

Grandstaff-Rice reviewed the 2015 AIA National Convention Official Delegate Information Booklet, citing the candidates, resolutions and bylaw amendment. She recommended that the board support the following candidates:

• Stuart Coppedge AIA for Treasurer • L. Jane Frederick FAIA for At-Large Director • Haley Gipe Assoc. AIA for At-Large Director • Jennifer Workman AIA for At-Large Director

After some discussion, Love proposed that the board designate both Kuttner and Grandstaff-Rice as our voting delegates at the convention. Love recommended that if board member feels strongly about any candidate or issue that it be sent to Kuttner and Grandstaff-Rice prior to the vote on May 16. Upon a motion by Pasnik, seconded by Roy, it was VOTED to designate both Kuttner and Grandstaff-Rice as our voting delegates at the convention; Unanimous.

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Joint Strategic Collaboration Agreement:

Grandstaff-Rice provided an update on the BSA/Foundation Joint Strategic Collaboration Committee which convened on March 26. The Joint Strategic Collaboration Agreement, referred to as the Collaboration Agreement, was reviewed. Grandstaff-Rice noted that the Collaboration Agreement is an updated version of the previously approved Transition Agreement, and that the Foundation board voted to accept the agreement as proposed on April 15. Upon a motion by Pasnik, seconded by Collins, it was VOTED to approve the Collaboration Agreement, as proposed; abstained by Fannon and Walker.

Strategic Focus- Membership:

Rachel Zsembery and Devin Canton of the Membership Committee and Membership Director MacDonald discussed the Committee’s work thus far, including revitalizing the Student Design Showcase, resulting in a small annual exhibition, and facilitating roundtable discussions with committee chairs and the four strategic area VPs. The group also discussed mission, goals, and challenges and ways the BSA can support them. Additionally, the Committee members discussed simplifying the membership dues structure and the respective impact. While the board is in favor of simplifying the dues structure, more information was requested before an official decision can be made. Love requested that MacDonald, along with the Membership Committee, organize a conference call with interested board members, to further discuss the logistics and impact on the budget. Love requested that this be tabled for the June 25 meeting.

Honors & Awards Committee Recommendations:

Naz Cooper, chair, and Sarah Lindenfeld delivered the Honors & Awards Committee’s recommendations for 2015. Upon a motion by Woodward, seconded by Pasnik, it was VOTED to accept the Committee’s 2015 recommendations, as proposed; unanimous.

Other Business:

Gray briefly voiced his concerns with the recent IDeAs conference and the BSA’s involvement. Elizabeth Cox, Young Architect Regional Director of New England, briefly discuss the Young Architects Forum and how the BSA can get more involved.

Adjourn: Upon a motion by Grandstaff-Rice, seconded by Carroon, it was VOTED to adjourn the meeting at 10am; unanimous. Mark Pasnik AIA Secretary

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4

15

THE BOSTON SOCIETY OF ARCHITECTS

Financial Statements

December 31,2014 and 2013

(With Independent Auditors' Report Thereon)

16

/M Nnnottt¡ & TAYLIR/ LLp 24 Hartwell AvenueLexington/ Massachusetts 02420

Telephone: 7 81 862-6833Facsimile: 781 862-8277

CERT I f I E D P U BLIC ACCOU NTANTS

INDEPENDENT ATIDITORS' REPORT

The Board of DirectorsThe Boston Society of A¡cbitects:

Report on the Financial Statements

We have audited the accompanying financial statements of The Boston Society ofArchitects (the "Society"), which comprise the statements of furancial position as ofDecember 3I,2014 and 2013, and the related statements of activities and changes in netassets and cash flows for the years then ended, and the related notes to the furancialstatements.

Mønøgement's ResponsíbìIify for the Fínancíal Statements

Management is responsible fo¡ the preparation and fair presentation of these financialstatements in accordance with accounting principles generally accepted in the UnitedStates of America; this includes the design, implementation, and maintenance of intemalconhol relevant to the preparation and fair presentation of financial statements that arefree from material misstatement, whether due to fraud or error.

A udito rs' Resp o ns íb ílþ

Our responsibility is to express an opinion on ttrese financial statements based on ouraudits. We conducted ou¡ audits in accordance with auditing standa¡ds generallyaccepted in the United States of America. Those standards require that we plan andperform the audit to obtain reasonable assurance about whether the financial statementsare free from material misstatement. t

An audit involves performing procedures to obtain audit evidence about the amsunls an¿disclosures in the financial statements. The procedures selected depend on the auditor'sjudgment, including the assessment of the risks of material misstatement of the financialstatements, whether due to fraud or er¡or. In making those risk assessments, the auditorconsiders internal control relevant to the entity's preparation and fair presentation of thefinancial statements in order to design audit procedures that are appropriate in thecircumstances, but not for the purpose of expressing an opinion on the ef,lectiveness ofthe entþ's internal control. Accordingly, rrvo express no such opinion. An audit alsoincludes evaluating the appropriateness of accounting policies used and thereasonableness of significant accounting estimates made by management, as well asevaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for ou¡ audit opinion.

17

Opíníon

In ou opinion, the financial statements referred to above present fairly, in all materialrespects, the financial position of The Boston Society of Architects as of December 31,2014 and2013, and the changes in its net assets and its cash flows for the years thenended in accordance with accounting principles generally accepted in the United States ofAmerica.

N"rdet(a +-falloç LLPApril23,2QI5

2

18


Statements of Financial Position

As of Decembor 3I,2074 and20I3

2014

AssetsCurrent assets:

Cash and cash equivalentsAccounts receivable, net of allowance for doubtful accounts

of $3,21I :m2014 and 2013Due from allied organizationsPrepaid expenses and other current assetsAccrued interest and dividends receivableShot-term investments, at fair value

Total current assets

Properly and equipment, at cost:Furniture and fixturesComputer software and equipmentLeasehold improvements

Less: accumulated depreciation and amortizationNet properfy and equipment

Long-term investments, at fair valueDeposits

Total assets

Liabilities and Net Assets

Current liabilities:Accounts payable and accrued expenses

Deferred revenue

Due to allied organizationsNote payable, currentCustomer deposits

Total current liabilities

Deferred rentDeferred lease incentives, net of amortization

Total liabilities

Net assets:

U¡resûicted

2013

$ 431,705 S 677,771

165,22072,4I4

156,21026,652

2,95r,133

279,6986t,240

204,37033,109

4-27 5,3993,803,334 5,53 1,597

215,765526,841

3,334.268

209,273

525,0913,334,268

4,076,974(1,105,295)

2,971;579

1,0r9,275443,I31

4,069,632(780,936)

3,287,696

406,966

$ 8,237,319 $

$ 126,164848,968

91,077400,000

34,823

408,694

941,61768,746

800,000

32,608

$

1,501,032 ') )\ 1,665

516,L371,t00,647

3,t17,81.6

5,1 19,503

Total liabilities and net assets $ 8,237,319 $ 9

The accompanying notes are an integral part ofthesefinancíal statements.

19

THE BOSTON SOCIETY OFARCHITECTS

Statements of Activities and Changes in Net Assets

For the Years Ended December 31,2014 and 2013

2014 2013

Revenue:Membership dues and assessments

Professional and member servicesIndustry conventions and tradeshowsContributionsRental incomeMiscellaneous income

Total revenue

Operating expenses:Professional and member serviceshrdustry conventions and tradeshowsSalaries, payroll taxes and other benefitsBuilding expensesOther operating expenses

Interest expenseTotal operating expenses

Deficiency ofrevenue over expenses from operations

Other income (expense):

Interest and dividendsNet realized and un¡ealized gains on investmentsInvestment advisory fees

Decrease in trnrestricted net assets

Unrestricted net assets, beginning ofyear

Un¡estricted net assets, end ofyear

$ r,956,7391,123,6062,425,597

630r05,740

12,356

1,gg 1,9657,077,9732,349,917

5,60290,49928,271

$

5,624,662 5,433,127

7,390,1627,535,2761,925,130

629,370457,676

14,367

5,95r,975

(327,313)

r,655,9541,422,5011,993,163

622,644479,41424,514

6,097,lgo

(664,063)

(187,029)

5,306,532

160,7t959,410

890

180,239

(483,824)

5,790,356

144,76233,744

(37,622) 9

140,284

$ 5,119,503 $ 5,306,532

The accompanying notes are an integral part of these financial statements.

4

20

TIIE BOSTON SOCMTY OF ARCHITECTS

Statements of Cash Flows

For the Years Ended December 31,2014 and 2013

2014 2013

Cash flows from operating activities:Decrease in net assets $Adjustments to reconcile decrease in net assets

to net cash used in operating activities:I¡crease in defened rent

Depreciation and amsrtl2¿¡ion of property and equipmenr

Amortization of defened lease incentivesNet realized and unrealized gains on inveshentsChanges in operating assets and liabilities:

Accrued interest and dividends rcceivableAccounts receivablePrepaid expenses and other curent assets

Accounts payable and accrued expenses

Due tolfrom allied organizations

Deferred revenue

Net cash used in operating activities

Cash flows from investing activities:Pwchases of invesbnentsProceeds from sale of investulentsPurchases ofprope4y and equipnentDecrease (increase) in depositsIncrease in customer deposits

Net cash provided by investing activities

Cash flows from financing activities:Repayments on note payable

Net cash used in financing activities

lncrease (decrease) in cash and cash equivalents

Cash and cash equivalents at beginning ofyear

Cash and cash equivalents at end ofyear

(187,029) $ (483,S24)

13,765

324,359(65,033)(33,744)

6,457

r14,47848,160

(282,530)

ll,l57(92,64e)

13,765

327,3'.15

(65,033)(59,410)

(3,637)292,262

(106,458)(t59,525)

36,872140,305

(142,609) (67,308)

(5,476,217)5,914,952

(8,242)(36,165)

2,215

(2,882,659)3,367,064

Q5,044)17,0432,060

296,543 478,464

(400,000) 400,000)(400,000)

(246,066)

677 '771

$ 43 1,705

400,000)

I l, 156

666,615

g 677,7'71

(continued)

The accompanying notes are an integtal part ofthesefinancial statements.

5

21

TIIE BOSTON SOCIETY OF'ARCHITECTS

Statements of Cæh Flows (continued)

For the Yea¡s Ended December 31,2014 and 2013

2014 2013

Supplemental cash fl ow data:

Cash paid for interest $ 14,361 $ 24,5t4

The accompanying notes are an integral part ofthese/ìnancìal statements,

6

22


Notes to Financial Statements

December 31, 2014 and 2013

The Boston Society of Architects (the "Society") was incorporated in Massachusetts as a not-for-profit membership organization whose purpose is to serve members and the generalpublic within the following broad areas: education, ethical practices, advancement of theprofession, publications, advocacy of the profession, and other member and public services.The Society is the American Institute of Architects chapter in eastern Massachusetts. TheSociety derives its revenues from membership dues and programs, tradeshows, advertising inits magazine, newsletters and website, other activities, and investment income.

(2) Summary of Significant Accounting Policies

(a) Net Asset Categories

The Society reports information regarding its financial position and activities according tothree classes of net assets: unrestricted, temporarily restricted and permanently restricted.

Unrestricted net assets represent net assets without existing donor-imposed stipulations as totheir use by the Society. Temporarily restricted net assets a¡e net assets with donor-imposedtime or purpose restrictions that have not yet expired or been met by the Society. It is theSociety's policy to treat as unrestricted support contributions with donor-imposed restrictionswhen those restrictions are met in the same year the contribution is received. Permanentlyrestricted net assets are assets with donor-imposed restrictions that require the amount to beheld in perpetuity by the Society. As of December 3 1 , 2014 and 2013 , all of the Society's netassets were classified as un¡estricted.

(b) Revenue Recosnition

Revenue from membership dues and assessments are recognized ratably over the term of themembership. Revenue from professional and membership services, including advertising,are recognized tn the period when the services are rendered. Revenues from industryconventions and tradeshows ¿¡Íe recognized in the period when these events are held.Contributions are recognized as revenue in the period when assets are unconditionallypromised to the Society, or if not previously unconditionally promised to the Society, in theperiod when the assets are received. Rental revenues are generated primarily from the short-term rental of certain areas of the offrce and exhibit space occupied by the Society to thirdparties who hold events, functions or meetings in the space. Rental revenues are recognizedratably over the period of use by the third party, which is generally one day.

7

23



December 31, 2014 and 20L3

(2) Summarv of Significant Accountine Policies (continued)

(c) Cash and Cash Equivalents

Short-term investments that are highly liquid, readily convertible into cash and have originalmaturities of three months or less a¡e considered to be cash equivalents.

(d) lnvestments

Investments in marketable securities with readily determinable fair values and allinvestments in debt seçurities are valued at their fair values in the statement of financialposition. Realized and u¡realized gains and losses are reported as changes in unrestricted netassets.

(e) Accounts Receivable

Accounts receivable are stated at the amounts management expects to collect fromoutstanding balances at year-end. The Society maintains an allowance for doubtful accountsat an amount the Society estimates to be sufficient to provide adequate protection againstlosses resulting from extending credit to customers. In judging the adequacy of theallowance, the Society considers multiple factors including historical bad debt experience,the general economic environment, the need for specific customer reserves and the aging ofreceivables. Management will charge off to the allowance any balance that remains after ithas exhausted all reasonable collection efflorts and concludes that additional collection effortsare not cost-justified. Accounts receivable are considered past due based on contractualterms.

(f) Propertv and Equipment

Property and equipment are stated at cost or estimated fair market value at the time ofdonation if donated to the Society. Amounts over $ 1 ,000 with useful lives greater than oneyeat arc capitalized. Repairs and maintenance are expensed when incur¡ed. Depreciationand amortization is provided for on the straight-line method over the estimated useful lives ofthe assets as follows:

Computer software and equipmentFumiture and fixturesLeasehold improvements

3-5 years3-7 years

Shorter of estimated useful life or remainingterm of lease

8

24

THE BOSTON SOCIETY OF'ARCHITECTS


December 3I, 2014 and 2013

(2) Summary of Significant Accounting Policie$ lcontinued)

(g) Operatinq Leases

The Society leases office space in Boston, Massachusetts. Minimum rental expense,including minimum scheduled rent increases under non-cancellable operating leaseagreements is recognized on a straight-line basis over the lease term. The lease term is 20years. The straight-line rent calculation and rent expense includes the period of time betweentaking control of a leased site and the rent commencement date. The Society recognizes thedifference between the recognized straight-line rental expense and the amounts payableunder the lease as a deferred rent liability. Tenant allowances from the landlord are recordedas liabilities when received and are reported as deferred leasehold incentives, net ofamortization.

(h) Defened Revenue

Deferred revenue represents revenue, such as dues and special membership assessments,received in the current year, which relate to a future reporting period.

(i) Compensated Absences

The Society has not accrued compensated absences because the amount would not bematerial to the financial statements.

The Society is a not-for-profit organization exempt from taxation unde¡ Section 501(c) (6) ofthe Internal Revenue Code. The Society has reviewed its tax positions and has determinedthat no provision for uncertain tax positions is required for open tæ< years through December31,2074.

The Society files tax retums in the U.S. federal jurisdiction. Generally the Society is nolonger subject to examination by tax authorities in any jurisdiction for years before 201J.

(k) Advertising

The Society publishes a magazine and contracts with a third party to manage the relatedadvertising. The Society pays an advertising sales commission. Advertising productioncosts are expensed as they a¡e incu:red and advertising communication costs are expensedthe first time the advertising takes place. Advertising expense was $83,880 in 2014 and576,330 in2073.

9

25



December 37, 2014 arLd 2013

(2) Summa¡)' of Sisnificant Accounting Policies fcontinued)

(l) Use of Estimates

The preparation of financial statements in conformity with accounting principles generallyaccepted in the United States of America requires management to make estimates andassumptions that affect the reported amounts of assets, liabilities and disclosure of contingentassets and liabilities at the date of the financial statements and the reported amounts ofrevenue and expenses during the reporting period. Accordingly, actual results could differfrom these estimates,

(m) Reclassifications

Certain 2013 amounts have been reclassified to conform to the 2014 presentation. Thesereclassifications had no effect on previously reported results ofoperations or net assets.

(n) Risks and Uncertainties

Financial instruments, which potentially subject the Society to concentrations of credit risk,consist principally of cash and cash equivalents, invesfunents and accounts receivable. TheSociety places its temporary cash investments with creditworthy, high-quality financialinstitutions.

The Society maintains its cash balances in one financial institution located in Boston,Massachusetts. The Federal Deposit Insurance Corporation (FDIC) insu¡es deposits atmember banks up to $250,000 per depositor, per bank. At December 31, 2074,fhe Society'suninsured cash balances at the bank totaled $453,137.

The Society's invesûnent securities, including temporary investments in cash equivalents, areheld by a brokerage firm that is a member of the Securities lnvestment ProtectionCorporation (SIPC). Securities held by member brokerage frrms, including up to $250,000of cash equivalents, ate insuted by the SIPC up to $500,000 per customer, per brokeragefrm. SIPC protection would be triggered only in the event of a financial failure andliquidation of aparticipating brokerage firm or if the customer's securities are not returned.This protection does not cover invesfinent losses in customer accounts due to marketfluctuation or other claims for losses incuned while the brokerage firm remains in business.

Investment securities are exposed to various risks, such as changes in interest rates or creditratings and market fluctuations, Due to the level of risk associated with certain investmentsecurities and changes in the market value of investment securities, it is possible that thevalue of the Society's investunents and total net assets balance could fluctuate materially.

10

26




(2) Summary of Significant Accounting Policies (continued)

(n) Risks and Uncertainties (continued)

Accounts receivable represent amounts related to the Society's sale of advertising, tradeshow revenue (Note 8), and other miscellaneous sorrces of income. It is the Society,spolicy, with respect to the credit risk of receivables, to evaluate, prior to the extension ofcredit, any potential debtor's financial condition and determine the amount of open credit tobe extended. The carrying amounts of cash, receivables, accounts payable and accruedexpenses approximate fair market value because of the short-term nature of these items.

(3) Investments

Investments consist of ma¡ketable securities and money market funds held for investment,which a¡e stated at fair value and summarized as follows as of December 3 I :

2014 2013

CostFair

Value CostFair

Value

Money market frrnds

U.S. equity securities

Mortgage and asset-backed

securities

U.S. corporate bonds

lnternational bonds

U.S. Treasury and U.S.govemment agencies

$ 92,018 $

7,3r9,369

130,020

r,604,40032r,204

$ 92,018

7,112,525

tDg,4g31,602,477

327,66I

116,860

481,072

345,957

r,767,84679l,gg6

$ 1 16,860

647,ggl

360,419

1,792,089

793,950

485,828 503,397 533,017 564,tgl

S 3,728,996 $3,970,409 $4,036,639 s 4,275,399

11

27



December 3I,2014 and 2013

(3) Investments (continued)

Following is a reconciliation of total return on investrnents to the statement of activities forthe years ended December 3l:

2014 2013

lnterest and dividendsNet realized gain (loss) on sale of investmentsNet u¡¡ealized (loss) gain in fair market value

of investments

Investment advisory fees

$ t44,t6282,720

$ 160,719

64,607

(5,197)(39 ,890)

Total return on investments g 140,284 $ 180,239

(4) Fair Value Measurements

The Society has implemented the requirements of FASB ASC 820-10 Fair ValueMeasurements and Disclosures for its financial assets and liabilities. ASC 820-10 refines thedefinition of fair value, establishes a framework for measuring fair value, and expandsdisclosures about fair value measurements. The standard defines fair value as the price thatwould be received to sell an asset or paid to transfer a liability in an orderly transactionbetween market participants. The standard requires the use of market-based information overentity-specific information, when available, and establishes a three-level hierarchy formeasuring fair value based on whether the inputs to a fair value measurement a¡e consideredto be observable or unobservable in an active marketplace.

The hierarchy requires the use of observable market data when available. These inputs havecreated the following fair value hierarchy:

Level I - Valuation based on quoted market prices in active markets for identical assets orliabilities that the Society has the ability to access as of the reporting date, and wheretransactions occur with sufücient frequency and volume to provide pricing information on anongoing basis.

Level 2 - Valuation based on inputs other than quoted prices within Level 1. For example,quoted prices for similar assets in active markets or quoted prices for identical assets in

(48,976)(37,622)

t2

28




(4) Fair Value Measurements (continued)

inactive markets-that is, markets in which there are few transactions, prices a¡e not current,or prices vary substantially over time.

Level 3 - Valuation based on inputs that are unobservable and significant to the fair valuemeasurement of the asset or liability. Unobservable inputs are supported by little or nomarket activity as of the measurement date and therefore reflect the entity's own assumptionsabout what market participants would use in pricing ttre asset or liability using the bestinformation available under the circumstances. The following is a description of theSociety's valuation methodologies used for assets measured atfaft value:

Money Market Funds: The fair value of money market funds is based on quoted net assetvalues at the end of the business day. Due to the short-tern nature of the investrnents, thefair value is expected to approximate cost.

Equity Securities, Mortgage and Asset-Backed Securities, Corporate Bonds and U.S.Treasury and U.S. Agencies: The fair value of these securities is based on the closing pricesreported in the active market in which the individual secwities a¡e traded. These securitiesare classified as level 1 f,rnancial instruments as they are valued on an active exchange usingprices provided by broker/dealers who actively make markets in these securities.

The following table sets forth, by level within the fair value hierarchy, the Society's assets atfair value:

December 31,2014 Total Level l Level2 Level 3

lnvestrnents:

Money market funds


Mortgage and asset-

backed securities


International bonds

U.S. Treasury and U.S.

government agencies

$ 92,0181,319,369

130,020

1,604,400

321,204

$ 92,018

1,319,369

130,020

1,604,400

321,204

$ $

503,397 503,397

$ 3,970,408 $ 3,970,409 $ $

13

29




(4) Fair Value Measurements lcontinued)

December 31. 2013 Total Level I Level2 Level3

Investnents:Money market funds


Mortgage and asset-

backed securities


International bonds

U.S. Treasury and U.Sgovernment agencies

$ I 16,860

647,997

360,418

l,7g2,ogg793,850

$ I 16,860

647,ggl

360,4181,792,089

793,850

$ $

564,19t 564,19I

$ 4,275,399 $ 4,275,399 $ $

(5) Intemal Use Software Development Costs

The Society has capitalized certain internal use sofl-rvare development costs incured undercontracts with vendors to develop a database and website network system. The database wascompleted and placed in service in September 2010. Subsequent upgrades and enhancementshave also been capitalized. Total costs of $162,550 as of December 31, 2014 and 2013,respectively are included in computer software and equipment on the statement of financialposition and are being amortized over the expected useful life of five years.

The website was completed and placed in service in 2011. Total costs of $169,405 areincluded in computer software and equipment on the statement of financial position as ofDecember 31,2014 and 2073 and are being amortized over the expected useful life of fiveyears.

During the years ended December 31, 2014 and 2073, the Society incurred amortizationexpense on internal use softwa¡e of $75,249 and $74,581 respectively. Accumulatedamortization for intemal use software was $288,392 andS2I3,I42 as of December 3I,2014and 20 73, respectively.

t4

30



December 3I, 2014 and 2013

(6) Leasehold Improvements

Under the Society's lease agreement for office space (see Note 9), the landlord agreed to payapproximately 50o/o of the actual cost of the leasehold improvements, up to an agreed upontenant allowance. The construction was substantially completed in December 20lI when theleasehold improvements were placed in service.

All improvements to the space are shown in leasehold improvements on the Society'sstatements of financial position at December 31, 2014 and 2013, in the amount of53,334,268. The Society will recognizethe incentive on a straight-line basis over the leaseterm as a reduction of rental expense, The unamortized portion of the defer¡ed leaseincentive amounted to $1,100,647 and $1,165,680 as of December 31, z0l4 and 2013,respectively, net of accumulated amortization of $- and $134,974 as of December 31,2014and 2013, respectively.

(7) Deposits

During December of 2010, the Society transferred $400,000 to a letter of credit held by abank as escrow for the Society's lease commitment for offrce space located at290 CongtessStreet Qt{ote 9). The letter of credit will be reduced to $300,000 on the fifth anniversary ofthe Rent Commencement date, and by additional $100,000 increments every five yearsthrough the end of the 20-yen lease term.

(8) Consulting Agreement

On December I,2011, the Society entered into an agreement with an entity that became theexclusive seller on behalf of the Society of booth, sponsor and event-related sales for theArchitecture Boston Exposition Tradeshow. The agreement is for a period of five years, andis renewable upon agreement between the parties. This agreement may be terminated with 90days written notice by either party. However, if the contract is terminated for any reason, theSociety is obligated to pay this entity a residual sales commission on revenue from allexisting event customers at a rate of 27% for a period of two yeats. This entity also hasseparate agreements with the Society related to the sale of advertising space in the Society'spublications and through other forms of media.

During the year ended December 31,2014,$2,220,865 (39.50%) of total revenue was eamedthrough this customer. As of December 3I,2074, $144,840 (87.66%) of accounts receivablewas due from this sarne customer.

15

31




(8) Consultine Asreement (continued)

During the year ended December 37,2013,82,633,286 (48.70%) of toøl revenue was earnedthrough this customer. ,As of Decemb er 3l , 2073 , 527 4,698 (97 .I0%) of accounts receivablewas due from this same customer.

(9) Operating Leases

The Society leases office space in Boston, Massachusetts under an operating lease expiringon October 31, 2031 (the "Lease Agreement") with an option to renew for an additional oneor five years at the fair market rental rates. Under the terms of the Lease Agreement theSociety was granted access to the property on April l,2}l1 in order to make improvementsprior to occupying the premises. Rental payments commenced on November I,20ll.

The Society leases off,rce equipment under long-term operating leases expiring on variousdates through May of 2018.

Rent expense under these leases for the years ended December 31, 2Ol4 and 2013 was5357,121 and $361,595, respectively. Futrue minimum rental payments under non-cancellable operating leases ¿re as follows for the years ending December 3l:

20t520162017

201820r9Thereafter

$ 407,388

410,261

429,900427,000425,000

5,404,167

$ 7,503,616

( 1 0) Commitnents and Contingencies

During the year ended December 31,2013, the Society entered into an agreement with acompany to provide logistical and other services af its 2Ol4 and 2015 tradeshows. TheSociety made purchases of $178,131 urder this agreement during the year ended December31,2014 and estimates that it will make purchases of approximately $185,000 under thisagreement during the year ended December 31,2015.

16

32

TIIE BOSTON SOCIETY OF'ARCHITECTS


December 3L, 2014 and 2013

( I 0) Commitments and Contingencies (continued)

During the year ended December 3L,2014, the Society entered into agreements to hold itsannual tradeshow at a convention center in Boston, Massachusetts during November of 2015,2016 and 2017. Under the agreements the Society must provide the convention center withminimum license fees of $169,090, 5174,164 and $179,389, for the 2015,2016 and 2017tradeshows, respectively.

(l l) Long-Term Note Payable

On November 18, 201 I the Society borrowed $1,200,000 from a financial institution under anote payable agreement (the "Note"). Under the terms of the Note, as amended, alloutstanding principal must be repaid to the fìnancial institution no later than Feb 18, 2015(the "Maturity Date"). However, under the terms of the Note, no principal payments arerequired to be made between January 1,2015 and the Maturþ Date. The Note bears interestat a vaÅable rate equal to the financial institution's "base rate" less 0.5% (2.75% atDecember 3I,2014). The terms of the Note dictate that the annual interest rate on the notecannot be less than 2.75%o. Payments of interest only are due on a monthly basis. Theoutstanding loan balance at December 31, 2014 and 2013 was $400,000 and $800,000,respectively. The Note is fully collateralized by a securþ interest in the Society's investmentsecurities, which are held at the financial institution. The dollar value of the investmentsecurities serve as collateral equal to the outstanding balance of the Note as of December 31,2014 and20l3.

Scheduled annual minimum principal repayments required under the Note are as follows forthe years ending December 31:

20r5ThereafterTotal future payments

Less: current portion

$ 400,000

400,000

Note payable - long term $

L7

33




( 1 2) Related-Party Transactions

The Society provides administrative services to four other architectural not-for-profitorganizations: AIA Massachusetts, AIA Central Massachusetts, Westem Massachusetts AIA,and the BSA Foundation (formerly the "Boston Foundation for Architecture").

AIA Massachusetts is a state organization of the American Institute of Architects. Most AIAMassachusetts revenue is derived from the Society through dues assessed to Societymembers who a¡e licensed architects. This expense of $105,872 and $108,056 is included inprofessional and member services on the Society's statements of activities for the yearsended December 3I, 2074 and 2073, respectively. As of December 31, 2014 and 2013,$80,906 and $63,056 was payable to AIA Massachusetts and is included in due to alliedorganizations on the Society's statements of financial positions.

During 2014 and 2013 the Society billed AIA Massachusetts for administrative fees andexpense reimbursements totaling $5,536 and $18,734, respectively, which are included inprofessional and member services revenue on the Society's statements of activities.Expenses incurred by the Society on behalf of AIA Massachusetts for the years endedDecember 31,2014 and 2013 of $1,110 and $14,309, respectively, are included inprofessional and member services expenses. As of December 31, 2074 and 2073, amountsreceivable from AIA Massachusetts of 549,272 and $53,408, respectively, are included indue from allied organizations on the Society's statements of financial position.

The Society has agreements with AIA Central Massachusetts and Western MassachusettsAIA to provide them with management services. During the years ended December 31,2014 and 2013, the Society billed AIA Central Massachusetts 94,020 and $3,306,respectively, and Westem Massachusetts AIA $3,046 and $2,051, respectively, foradministrative fees and expense reimbursements which are included in professional andmember services revenue on the Society's statements of activities. As of December 31,2014and 2013, amounts receivable from AIA Central Massachusetts were $1,004 and $804,respectively, and amounts receivable from Western Massachusetts AIA were $844 and $511,respectively. These receivables are included in due from allied organizations on thesociety's statements of financial position as of December 31, 2014 and20l3.

The Society collects member payments on behalf of the allied organizations as part of itsduties under the management contracts, As of December 31,2014 and 2013, amountspayable to the Western Massachusetts AIA were $8,740 and $3,080, respectively; amountspayable to the BSA Foundation were $1,431 and $2,190, respectively; and amounts payableto AIA Central Massachusetts were $0 and $220, respectively. These amounts are includedin due to allied organizations on the Society's statements of financial position as ofDecember 3I, 2014 and 2013,

18

34




(12) Related Partv Transactions (continued)

The BSA Foundation (the "Foundation") is a not-for-profit public charity under Section503(c)(3) of the Intemal Revenue Code. During the years ended December 31, 2014 and.2013, the Society charged the Foundation $40,001 and $19,614, respectively foradministrative fees and expense reimbursements. These amounts a¡e included in revenue aspart of professional and member services on the Society's statements of activities. As ofDecember 31,2014 and2013, The Society has amounts receivable from the Foundation of521,294 and $6,517, respectively, which a¡e included in due from allied organizations.

During the years ended December 31, 2014 and 2014, certain employees of the Societyperformed work on behalf of the Foundation in connection with certain grants and contractsthat the Foundation had received. During 2014 and 2073, the Society charged theFoundation $10,084 and $26,000, respectively in connection with the performance of theseactivities by Society's employees, which was recognized as revenue by the Society. Thisamount is included in miscellaneous income on the Society's statement of activities andchanges in net assets. The Foundation made a $2,400 contribution to the Society during theyear ended December 31, 2073, to assist in funding the activities of another charitableorganization. This amount is included in contributions on the Society's statement ofactivities and changes in net assets.

On March 17, 2014, the Foundation entered into a one-year transition agreement with theSociety that is overseen by a joint committee. The purpose of the agreement is to develop ajoint strategic collaboration plan that will allow the Foundation to oversee the publiceducational programs and related fundraising that have historically been developed andoperated by the Society. All activities undertaken via the collaboration are intended tofurther the Foundation's charitable mission. Potential initial a¡eas of collaboration includecivic initiatives, exhibitions, lectures, forums and symposiums. All Society employees andcontractors who work on these programs shall remain employees and contractors of theSociety, and the Society shall have sole responsibility for terms of employment andcontractor arrangements. The Foundation's responsibility is to focus its attention on publicoutreach and engagement for the benefit of the joint organizations. The Society will supportthe Foundation by participating in necessary meetings and by sharing its staff and operatingresources. The Society will continue to pursue its professional programs that support thecreation of architectu¡e, including expositions, committees, websites and design awards. Theagreement is in the process of being extended for an additional two to three years.

In 20 1 5, the Society has agreed to support the Foundation in the aÍrount of 5427 ,935 paid inmonthly installments through December 31,2015. The Foundation has agreed to reimbursethe Society for payroll expenses totaling up to $270,000 for the year ended December 31,20t5.

T9

35




(12) Related Party Transactions (continued)

Dtrring the year ended December 31,2013, a member of the Society's board of directors wasa principal in a law firm from which the Organization purchased legal services in the amountof 87,767, which is included in other operating expenses. No amounts were payable to thislaw firm as of December 31,2073. During 2014,the Society did not receive any legalservices from a law firm related to a board member.

During the year ended December 31, 2014 a member of the Society's board of directorsreceived a $250 writer's fee as compensation for writing an article for amagazine publishedby the Society. This amount is included in professional and member services. No amountswere due to this individual as of December 3I,2014.

(13) Defined Contribution Pension Plan

The Society has in effect a qualified profit-sharing retirement plan covering all eligibleemployees, established under Internal Revenue Code Section 401(k). Each eligibleparticipant may elect to defer up to I5%o of compensation subject to IRC limitations. TheSociety made matching contributions of $27 ,734 and 525,420 in 2014 and 2013 , respectively.

(14) Subsequent Events

The Society has evaluated all subsequent events through Apnl 23, 2015, the date thefinancial statements were available to be issued.

20

36


From: Jean Carroon FAIA, VP for Practice

Re: Knowledge/Practice Report

Date: June 4, 2015

On Tuesday, June 4, a meeting convened with the following BSA members to discuss the BSA’s strategic area of knowledge and practice: Jean Carroon FAIA—VP for Practice; Goody Clancy, Len Bertaux AIA –Small Practice Network chair, Bertaux + Iwerks Architects; Carol Burns FAIA – Taylor & Burns; Elizabeth Cox AIA – Young Architect Regional Director AIA NE, Payette; Jess Garnitz AIA – epNet chair, ADD inc./Stantec; Mary Hale Assoc. AIA – Shepley Bulfinch. Strategic Objectives: The meeting began by focusing on the three objectives from our strategic weave:

• To provide resources and services supporting the full range of practice models and share best practices

• To promote professional excellence with deep informative programming • To advance the BSA learning network to serve as an A/E/C thought leader and aggregator of

design research From these points, we discussed trends in the profession and what the BSA can do to better address these objectives. The Profession:

• We need to examine how/if the profession is changing and what is the impact? o More mergers? More hybrid firms? Increasing diversity? Increasing competition for

work? Is the profession shrinking? • We need to examine how/if the education of the profession is changing?

o Decreasing enrollment? Changing curriculum? Changing requirements to become an architect?

• There is a strong entrepreneurial spirit in firms. How is this impacting firm culture and structure? Are firms, schools and leaders keeping up with the needs of running an entrepreneurial culture?

• Young architects are looking for challenges and opportunities. • “Everything we do is about business development.” But architects are little trained or prepared

for this responsibility in the work. • The role of others in the business is also changing. How is this impacting the architecture

profession? o Buildings are becoming more complicated and there are more and new “characters”

who are involved in the process. How is this changing architecture? o Surge in OPMs? Changing role and expectations of clients and developers? The

relationships with contractors, subs and vendors?

38

• There is a strong need to increase consistency and collaboration between different architecture agencies (NCARB, AIA, ACSA, NAAB, etc.) and there is a need to increase consistency in practice between states.

The BSA:

• The BSA is doing a lot and is highly engaged in many of these topics. Members are generally very active.

o How can we better help people more easily access what’s going on through the BSA? • The committees are one vital way for sharing information and networking.

o How can we help committees collaborate on curriculum? Next Steps:

1. Convene committee chairs once or twice a year to coordinate curriculum planning and find additional ways to encourage crossover between committees

2. Provide access to the available research happening in practice, firms and education 3. Develop curriculum on important subjects (not dependent upon committees) on:

a. How to run and develop a firm b. What key technology is needed to operate firms today? c. Courses on professional practice d. Courses on the critical business elements of operating a firm

4. Find ways to explore new business practice models and share information with the field 5. Survey and publish information on who firms use for business practices (financial, legal,

marketing, etc.)

39


From: Emily Grandstaff-Rice AIA, chair

Re: BSA/Foundation Joint Strategic Collaboration Update

Date: June 4, 2015

On Thursday, June 4, the Joint Strategic Collaboration Committee convened to discuss a communications strategy and next steps for both the BSA and BSA Foundation.

Attendees: • Emily Grandstaff-Rice AIA, chair • Jim Collins FAIA • Mike Davis FAIA • Pamela de Oliveira Smith (guest) • David Eisen AIA (guest) • Stephen Gray Assoc. AIA • Bennet Heart

Objectives:

• Foundation: To build public awareness of design and the power of design thinking • Shared: To build a cohesive message advancing the shared civic vision • BSA: To ensure effective communication is reaching the profession (our members)

Implementation:

Content Collateral Platforms PR/Media Partners BSA Space

Gather, develop, and disseminate stories that illustrate the power of design

Enhance the website and other communications vehicles to present the stories in more accessible and meaningful ways

Utilize traditional and social media platforms to build a public audience, stimulate discussion, and create opportunities for involvement

Leverage existing and create new media relationships and contacts that will elevate our message in public forums

Engage and embrace partner networks to assist in the gathering and distribution of messages

Gather data to build public audience and use magazine, exhibitions and other collateral to promote the value of design

Become Boston’s “Go-To” hub for all design-related matters

Derive and publish content from our committees as well as professional and academic research that define and illustrate best practices and innovative thinking

Evolve the website in scalable ways that will meet the needs of a constantly evolving profession

Engage all communications channels to ensure members/architects are aware of opportunities and relevant issues

Promote architects to the media as thought leaders and experts

Leverage the networks of other chapters, national and allied orgs to disseminate information

Use magazine, exhibitions, and other tools on site to create dialog and reflect the issues of the day

40

Needed Resources: • Website development • Content development (writers/editors) • General marketing budget • Photography services • Videography services • Better back end systems (database)

Future Wants: • Environmental signage • Paid advertising • Enhance PR tracking • Print collateral campaign • Ongoing brand consultation • Onsite kiosk for data capture • Audience research budget • Smart phone app

Our Focus:

• Prioritize events/civic programs which benefit the public o Learning by Design and kids programming o CDRC o CommonBoston o Living w/ Water o Urban Design Workshops o Public Forums (like IDeAS)

Next Steps: The staff will begin to research costs to obtain the needed resources and implement communications strategy. This will be further discussed and evaluated when drafting the 2016 budgets for both the BSA and Foundation.

41

To: BSA Board

Fr: Eric White

Re: ABX Report

Dt: May 26, 2015

In November, 2014 the BSA engaged DiCicco Gulman & Company (DG & C) to assess the value of ABX and make recommendations to the Board on recent interest by profit companies interested in purchasing the convention.

Attached is a cop of the report by Jody Goldman, ASA, CFE who is a DG&C partner specializing in valuation services. Below are highlights from her report:

1. ABX is a consistent performer with a high margin at 40% and also a high risk. a. ABX is a niche market with service to attendees and a very profitable business return. b. Our risks are:

i. Declining margins and limited growth opportunity ii. One event each year creates risk should the event need to be cancelled due to

severe weather or other catastrophic event. iii. Our dependence upon one small company (TMS) for sales can put the show at

risk should something happen to that company. 2. ABX is a steady performer with limited growth potential. The revenue and expense numbers

have been relatively consistent from Build Boston through ABX. 3. Estimated value of ABX

a. Income approach $2.835M b. Private Company Transactions $6.3M c. Transaction Multiples $4.790M - $5.684M

4. What would the BSA need to sell ABX for to cover the current annual revenue generated by the show?

a. Currently the BSA generates an average of $939K profit. The sale of ABX would need to be $18.8M to generate this amount of income to the annual operations based upon an average investment with a 5% annual return.

5. Recommendations based upon this report: a. ABX is a strong, steady performer and at this time we should not consider selling the

show unless there is a significant return generating nearly $1M annually. b. We need to maximize our return, primarily by managing our show expenses. c. We should purchase cancellation insurance to cover our risk from a catastrophic event. d. We should prepare contingency plans to reduce our risk of dependence upon TMS for

show sales.

42

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55


From: Ken Fisher FAIA & Vernon Woodworth FAIA

Re: Committee for the Advancement of Sustainability (CAS)

Date: June 18, 2015

I am writing to inform you that the Committee for the Advancement of Sustainability (CAS) has suspended activity. CAS began as a Board committee under the tenure of Jim Batchelor during his tenure as BSA President, and has continued as an open member committee focusing on sustainability policy since. The committee’s emphasis on policy has been intended to complement the focus on practice of the long-standing BSA Committee on the Environment (COTE), as well as the more recent Sustainability Education Committee, which is concerned with the training of architects. The CAS public policy forum held a year ago provided a glimpse of the status of sustainability efforts in a variety of contexts across the Commonwealth. We have prepared the attached document to distribute the information shared at that Forum. It is our hope that the Boston Society of Architects will continue to serve as a convener of such events, and that the document attached will be distributed, and possibly updated, as a culture of sustainability continues to evolve. I am also attaching a white paper on the business case for green buildings, another product of CAS that has value beyond the lifespan of this committee. CAS has served a vital purpose in its brief history. We expect that seeds planted during these years will germinate and thrive in coming years. Meanwhile our announced intention to disband has already provoked a fruitful discussion amongst those most intimately concerned with the role of the BSA in promoting a sustainable future. Input from the Board on this topic should be directed to Jim Stanislaski AIA and Phillippe Genereux AIA. Yours truly,

(Ken) Ken Fisher FAIA A. Vernon Woodworth FAIA Co-chair CAS Co-chair CAS

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BSA Committee for the Advancement of Sustainability:

The Business Case for Green Buildings Ken Fisher AIA and A. Vernon Woodworth AIA

June 14, 2012

I. Executive Summary. Sustainable construction holds the promise of benefits to the environment and society in many ways. This paper seeks only to document the impacts of green buildings on the financial bottom line. The business case for green buildings is extensive and compelling. The authors anticipate that these economic considerations will continue to drive the growth of the green building sector as the process of market transformation follows its current trajectory. II. Market Transformation The principle goal of sustainable design is to lessen the environmental impact of building construction and operations. These concerns have not played a major role in the evolution of the construction industry prior to the 21st century. Green building requires a different mindset, as well as different materials and technologies. The design process is more involved, construction more complex, and additional activities such as commissioning add to the cost and timeframe of a projects’ completion. Nevertheless as green building moves from the innovative fringes to center stage the construction industry has adapted and first costs have declined to the point where sustainable construction has been shown to be, on average, equivalent in cost to standard construction. This is the natural outcome of the process known as “market transformation” whereby a policy objective (sustainable construction) is furthered by the removal of barriers in the marketplace. Market transformation for green building has been facilitated by the USGBC’s LEED rating systems for which qualifying projects must utilize and document sustainable strategies and materials. The popularity of LEED certification has reoriented the design and construction industries, resulting in new patterns of “business as usual” throughout the construction marketplace. Market transformation with regard to sustainable design is an on-going process. Incentives, rebates, tax deductions, tax-exemptions, low-interest loans, and “stretch” codes are commonplace methods for encouraging design and construction that achieve higher levels of environmental performance. These programs provide the incentives for skill development in the construction sector, skills which can then be offered in an expanding market. III. First Costs Davis Langdon, an international real estate consulting firm with a reputation for sound research, has published a careful analysis of the cost of green buildings, entitled “Costing Green: A Comprehensive Cost Database and Budgeting Methodology”i. Based on extensive data this paper concludes that buildings designed and built to be LEED certified do not necessarily cost more than buildings designed only to minimum code requirements. In a study entitled “Managing the Cost of Green Building” the authors determined that analysis and planning can go a long way to mitigating the first costs of sustainable systems and designii. The General Services

57

CAS: The Business Case for Green Building Page 2 of 5

Administration has commissioned a “LEED Cost Study” concluding that a Federal Courthouse or government office building may entail a cost premium of 1% to 8% depending on the level of LEED achievediii. As new methods and technologies become increasingly integrated into the construction industry these first costs are likely to disappear. Conclusions of the Davis Langdon study in 2004 were that “the cost per square foot for buildings seeking LEED certification falls into the existing range of costs for buildings of similar program type”, and “many projects can achieve sustainable design within their initial budget, or with very small supplemental funding”. IV. Operations If building operations and employee productivity are factored into the total life-cycle costs of a building then first costs (design and construction) typically amount to no more than 2% of total costsiv. Green buildings offer economic benefits throughout a building’s lifecycle. These include:

1. Operations: Hard Dollars

• Energy Green buildings use less fossil-fuel based energy, thereby resulting in lower operating costs. In the effort to reduce carbon emissions and lower our dependency on foreign oil, conservation (i.e. using less energy through more efficient design and operation) is the most effective strategy. Buildings that require less revenue to heat, cool, and light yield a greater percentage of income for profit, expansion, and reinvestment.

• Water Water costs money. Green buildings conserve water as well as energy, sometimes thousands of gallons per year per occupant.

• Property Values Green Buildings command higher resale prices.

• Lower Vacancy Rates Lower vacancy rates have been documented to be consistent consequences of providing healthier interior environmentsv.

• Increased Retail Sales: Studies have shown that retail sales are greater where day-lighting strategies are employed.

2. Operations: Soft Dollars

• Decreased infrastructure demand: When a building uses fewer resources it requires less infrastructure support. Savings on water and sewage costs are in hard dollars, but the reduced demand on local infrastructure can be counted as an additional soft cost. This benefit accrues largely to the municipality where the green building is located, yet the likelihood is that this will be recognized and rewarded in the form of tax credits or deductions as a standard practice in the near futurevi.

• Improved employee attendance and reduced turn-over: Day-lighting and user controls have been shown to have a direct impact on building users, including perceived well-being, and physical health. These factors have also been shown to reduce worker turn-over.

• Increased employee productivity: The same environment that improves occupant well-being also supports enhanced productivity. Cost savings to employers are so significant that they have been demonstrated to offset increased lease costs. Productivity costs have been estimated to be 112 times greater than energy costs in the workplacevii. This one factor may outweigh all others in calculating the economic benefits of green buildings.

• Reduced Churn: Higher occupant satisfaction results in lower tenant turn-over rates. This, in turn, results in lower vacancy rates and less capital spent on fit-outs.

• Lower Insurance Risks: The Insurance industry is recognizing that green buildings reduce risks in a number of areas. Greater energy self-reliance means less likelihood of

58


power failure. Increased indoor air quality reduces liability exposure. And there are other examples. A reduction in premiums is a logical outcome of these features. Fireman’s Fund Insurance Company, the first property and casualty insurance company to offer green insurance, has researched the economic benefits of green buildings as well as the business risks of not building green. Their conclusions correspond to and validate the findings of this studyviii.

V. Conclusions Between the savings offered by energy conservation and the benefits of increased occupancy rates, higher leasing fees and enhanced productivity, the economic benefits of green buildings can simply not be ignored. Data supporting additional benefits such as reductions in healing time for hospital patients and improved test scores of students in green schools also have significant economic implicationsix. Further studies are likely to refine the cost/benefit analysis of building green, but with regard to return on investment the verdict is in: any initial premium resulting from sustainable design and construction is quickly offset by savings in water, energy, and especially productivity, savings that will continue to accrue throughout the lifetime of the building.

59


Graphics courtesy of Michael Ermann, Associate Professor Virginia Tech School of Architecture + Design [email protected] i “In a comparison between all projects – LEED seeking versus non-LEED, something interesting came to light: the cost per square foot for the LEED-seeking buildings was scattered throughout the range of costs for all buildings studied, with no apparent pattern to the distribution…In other words, any variations in the samples, or the sample averages, were within the range to be expected from any random sample of the whole population”. Costing

Green: A Comprehensive Cost Database and Budgeting Methodology, Davis and Langdon July 2004. This report was updated with a larger sampling of buildings and additional building types as The Cost of Green Revisited:

Reexamining the Feasibility and Cost Impact of Sustainable Design in the Light of Increased Market Adoption Davis and Langdon 2007. ii Syphers, Geof, et al. Managing the Cost of Green Building, KEMA, 2003. Available at: http://www.ciwmb.ca.gov/greenbuilding/Design/ManagingCost.pdf iii LEED Cost Study Steve Winter Associates 2004 for the General Services Administration. iv John McGowan, CEM, Author, Chairman Emeritus, DOE GridWise Architecture Council and CEO of Energy Control Inc. v The Relationship Between Corporate Sustainability and Firm Financial Performance University of Notre Dame 2012. vi For instance, Carroll County in Maryland offers property tax credits to commercial or industrial buildings which meet specific green building standards. In addition utilities offer incentives such as grants and technical assistance, and State and Federal governments provide additional funding opportunities. vii The Economics of Biophilia: Why Designing with Nature in Mind Makes Financial Sense Terrapin Bright Green 2012 p. 3. viii Fireman’s Fund Insurance Company findings: The investment of an additional 3% of project costs in the design phase can reduce construction costs by 10%. The Advantages to Building Green include:

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• Green buildings generate an average increase of 7.5 percent in a building's value and a 6.6 percent improvement in return on investment, while decreasing operating costs by 8 to 9 percent, according to McGraw-Hill Construction. • Higher revenue due to higher rents and occupancy rates. Vacancy rates of green buildings are lower than existing buildings. The CoStar Group found that LEED-certified buildings occupancy rate are 92 percent versus 87 percent for traditional buildings. • Lower operating costs by reducing waste output and energy consumption. The Environmental Protection Agency found that green buildings with a recycling focus can reduce waste output by 90 percent and use 30 percent less energy, which equates to a five percent increase in net operating income. • Attract and retain quality tenants. Improved indoor air quality in green buildings result in reduced absenteeism, and possibly higher productivity that could increase sales. Green buildings also make it possible to have government tenants. • Better insurance risk. Green buildings suffer fewer losses and are safer to insure because of the commissioning process required to become LEED certified. The demand for green buildings continues to climb, the company said, noting research last year by McGraw-Hill Construction that found the value of green building construction is expected to reach $60 billion in 2010, up from $12 billion in 2008. "Green buildings can boost real estate owners' bottom line by protecting and building net operating income, attracting and retaining quality tenants and improving the environment," said David Cohen, senior director of real estate, Commercial Insurance at Fireman's Fund, in the company's material. "Simply put, green buildings create a triple net effect, benefitting the owners' bottom line, its tenants and the environment." The Risks of Not Pursuing a Green Building Strategy: • Risk of obsolescence. As the U.S. Green Building Council certifies more and more buildings will traditional buildings be able to compete? Will the value of a traditional building decline and will late comers realize any first mover benefits? Green buildings are the future and are not a passing trend. • Reputational and transactional risk. If a building isn't known as green it will experience lower occupancy rates and rents. • Regulatory risk. Green is being incorporated into building codes at the local and state level. It can be complex as each city's standards are different. "In the future there may be federal mandates that existing buildings will have to adhere to," added Cohen. "Upgrading to green can anticipate these mandates and allow upgrades to occur on your terms." • Pollution. Existing buildings are one of the biggest contributors to environmental pollution in the U.S., accounting for 40 percent of total energy use, 72 percent electricity consumption, 39 percent of the carbon dioxide emissions, and 13 percent of total water consumption, according to the EPA. "The risks are clear," said Stephen Bushnell, senior director of emerging industries at Fireman's Fund. "Buildings that are not energy efficient or green will not be able to compete for the best tenants. Any building can become greener, often without a major capital expenditure." ix The Economics of Biophilia: Why Designing with Nature in Mind Makes Financial Sense Terrapin Bright Green 2012 p. 4. For Inquiries please feel free to contact Ken Fisher at [email protected] or Vernon

Woodworth at [email protected] .

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